Objective: To Conquer the Z Generation 

The “millennials” begin to age and the profile of younger consumers falls on the members of generation Z. A recent report highlights its “modus vivendi” and raises strategies for the insurance sector to conquer them.

Gen Z

Through different articles, in the Xenasegur blog we have dealt with the “millennials” . The also known as generation Y is made up of people who were born in the period between 1980 and 1995 and their “modus vivendi” is clearly distinguished from those who belong to the so-called generation X (1965-1979).

We speak of individuals who have developed coinciding with the rise of new technologies and the Internet, hence the term “digital natives” is usually used to refer to them. And their consumption habits clearly differ from those of their predecessors. Therefore, they require specific commercial strategies.

In the case of their relationship with insurance companies, millennials demand products on demand that are attractive, useful and affordable, as well as the development of “apps” associated with the latter, personalized attention during the 24 hours of 365 days a year, the use of a simpler language in policies or the creation of blogs such as Xenasegur that allow them to access content of interest and become familiar with the world of insurance.

However, everything that shines is not “millennial”. That is to say: not all “millennials” are young. It is more: they are not so much anymore, they are aging. Expressed more clearly: there is a new generation, named Z, that represents a different type of consumer that poses a challenge for the insurance sector. But, how are the Z? What are your habits of behavior and consumption? What should the insurance industry take into account to conquer them?

Who is the generation Z?

Responding to the questions raised and other questions has occupied Secure Time through a study as interesting as necessary: ​​”Generation Z: the next challenge”. A report that, logically, begins by explaining what Z generation is and, broadly speaking, how are the people who belong to it. In this regard, it can be stated that:

  • The Z are individuals born after 1995. Therefore, those who came to the world in that decade begin to integrate now into the labor market.
  • They grew up with the Internet and, above all, smartphones. In fact, their relationship with the insurance industry is mainly due to the fact that they hire insurance for their smartphones.
  • In Spain, according to data from the National Institute of Statistics (INE), generation Z represents some 8 million citizens.
  • Globally, by 2025, 75% of the labor force will co-exist.

How are members of Generation Z?

Compared with “millennials,” the Safe Time study points out, the Z are more realistic and less selfish and narcissistic. In addition, they are more creative and individualistic, they worry about the future and communicate through images. And with regard to its main characteristics, the following should be highlighted:

  • The Z can work with several devices at the same time. But that lack of concentration in one makes it difficult to “trap” them. Providing attractive content is one of the tasks that should be considered by those wishing to capture their attention – for example, insurance companies.
  • Although the price of a product is not decisive, the members of Generation Z, having experienced the effects of an economic crisis, take it into account. In fact, they value the offers and demand that the advertising of a product specify how much it costs.
  • The Z claim to be independent and do not identify with brands or tribes.
  • And related to this last point, claim authenticity to brands. If they detect that they sell smoke, they end up ignoring them.
  • On the contrary, those who do tend to pay attention to the “influencers”, a figure that is very important to reach Z.
  • Finally, far from being satisfied with the education that is given in the educational centers, those belonging to Generation Z like to expand knowledge through the Internet and are defenders of continuing education.

Does Generation Z trust the insurance sector?

According to the survey carried out for the preparation of the report, the latter shows that the degree of satisfaction of members of generation Z with insurance companies is satisfactory. And the survey has also made it possible to clarify what type of insurance the Z contract, how they would like to be in contact with the entities of the insurance sector or what kind of advertising calls them more attention. For the reasons stated in the study, the following conclusions can be drawn:

  • 65% of the Z have hired some insurance.
  • Regarding the type of policy subscribed, mobile phone insurance (83.3%) is the most demanded policy, followed by life insurance (33.3%), cars (27.8%), health (27 , 7%) and household (14%).
  • Only 13.95% of those interviewed stated that they were dissatisfied with their contact with insurance companies. As for the rest, their degree of satisfaction is good (39.53%), satisfactory (30.23%), very good (13.95%) or excellent (2.34%).
  • Interestingly, 67.53% of Z prefer to take out insurance in an office, thus assessing the personalized treatment. In smaller percentages, they would also subscribe a policy online (39%), by telephone (38.96%), using an “app” (28.6%) or by email (15.58%).
  • As regards communication with the insurance company, the telephone (62.32%) is the route with the most followers, ahead of the visit to the office (53.25%), the website (32, 47%), email (29.87%) and the “app” (25.97%).
  • At the moment of contracting insurance, the most reliable source of recommendation for a member of Generation Z is a relative or a friend (73.08%), followed by a professional in the sector (51%).
  • And chosen between companies such as Amazon, Apple or Google and insurance companies, 56.41% would trust the first when it comes to taking out insurance.
  • In the chapter on advertising, the one that most attracts the attention of the Z is the one that focuses on the economic offer (67.95%).
  • And finally, 88.46% refuse to be served by a robot (“chatbot”).

How can you conquer Generation Z?

By way of reflection, the Safe Time report proposes a series of “ad hoc” strategies for generation Z. Specifically, it proposes nine measures or suggestions that the insurance sector has to consider in order to win its members:

  1. As we have seen, the Z are capable of handling several devices at the same time. To get their attention, it is advisable to offer them modulable information and divided into short sections.
  2. Being served by people instead of by robots will also help to earn your trust.
  3. Like the “millennials”, the Z demand clarity and conciseness in the insurance language. And also that advertising includes the price or is communicated by an “influencer” or famous person.
  4. Generation Z is sensitive to what is happening on the planet and will value that an insurance company carries out Corporate Social Responsibility (CSR) initiatives.
  5. The Z are interested in everything that concerns them. And to connect with them it is advisable to take advantage of their entrepreneurial spirit and make them feel powerful.
  6. To contract insurance or communicate with your insurance company prefer to go to an office or talk on the phone with an operator. Direct communication, then, is another strategy to consider.
  7. That the Z trust more in technological giants like Amazon, Apple or Google at the time of hiring an insurance is a warning to navigators.
  8. That, in general, Generation Z positively values ​​the insurance entities is good. But these should not rest on their laurels.
  9. 51% of the Z trust professionals in the insurance sector, such as mediation, who must continue working so that this degree of trust increases.

Indeed, conquering generation Z is a challenge. But in such situations, authorized voices from the world of insurance such as Pilar González de Frutos encourage them to be positive and constructive. Speaking to the blog of Xenasegur, the president of the Spanish Union of Insurance and Reinsurance Entities (Unespa) observes:

“It is clear that today’s insurance sector is not the same as it was 200 years ago, nor will it be the same within two decades. But it will still be there to, in one way or another, continue to manage the risk . “